Cost of renting rises as landlords warned of tenants defaulting

The cost of renting privately rose by 0.5 per cent in April, pushing up the average UK rent to £709 a month, according to letting agency group LSL Property Services.

It was the first recorded increase for three months and left rents 2.4 per cent higher than a year ago.

Rents are highest in London, where they have risen by 4.5 per cent in the last year to an average of £1,032 per month, more than 46 per cent higher than the national average.

Report: Rents rose by 0.5 per cent in April, pushing up the average rent to £709 a month, according to letting agency group LSL Property Services.

The biggest decrease in rent was in Wales where they fell by 1.3 per cent and the West Midlands, where they were 0.6 per cent down compared to March.

David Newnes, director of LSL Property Services, said that the rental market had begun to 'head up'. He said: 'After absorbing the impact of the stamp-duty deadline on tenant demand, the rental market began to heat up in April.'

The report also showed that the level of arrears among tenants took a turn for the worst in April, with nearly 10 per cent of all rent unpaid at the end of the month, up from 8.7 per cent in March.

The total amount of unpaid rent in April amounted to £306million, a 14 per cent increase from £267million the previous month.

David Newnes said: 'Many tenants’ finances suffered in April as a result of seasonal spending in over the Easter period, not to mention the increasing cost of renting. In spite of this deterioration, tenant arrears have performed above expectations in recent months.

'Nevertheless, April’s rise should serve as a warning that landlords cannot afford to take their eye off the ball. Despite several monthly dips in 2012, rents are still rising at a faster rate than wages annually.

'With a faltering economy, and further public sector job losses to come, an increasing number of rented households will see their finances stretched.'